Odfjell Awarded Contracts For NOK 4.35 Billion

Odfjell Awarded Contracts For NOK 4.35 Billion

Statoil has awarded Odfjell two contracts worth a total of over 4.35 billion for drilling on Johan Sverdrup field.

Odfjell Drilling has been awarded contracts for both floating rig “Deepsea Atlantic” and for drilling services on the fixed drilling equipment which are to be installed on Johan Sverdup field.

Rig Day Rate Down By 46 Percent

Rig contract covers lease of the rig “Deepsea Atlantic” for 3 years starting in March 2016. In addition, options to extend the 6 × 6 months. The rig contract has a value in excess of 2.5 billion.

The day rate in the agreement land at low $ 300,000. It is down 46 per cent compared with the agreement rig today – at $ 566,000. The winning bid is also delivering than experts expected.

Borer 13 Wells

This contract is an important milestone for Johan Sverdrup project. We have secured an effective rig at competitive conditions that will help to maximize return from the field, says Margareth Øvrum, EVP Technology, Projects and Drilling in Statoil.

The rig “Deepsea Atlantic” shall prebore minimum 13 wells on the field before the start of production from Johan Sverdrup late in 2019. This will enable us to utilize production capacity of Johan Sverdrup as efficiently as possible, says Øivind Reinertsen director of the Johan Sverdrup field.

1.85 billion from platform drilling

Statoil has also signed a contract with Odfjell Drilling for drilling services on the fixed drilling installation on Johan Sverdrup field center starting in December 2018.

This contract is valued at an estimated 1.85 billion with a duration of four years including options to extend for up to 6 × 1 year. Drilling from Johan Sverdrup fixed installation will be supported by Odfjell Drilling’s offices in Stavanger.

Johan Sverdrup will create substantial value for the entire community for over 50 years. Odfjell Drilling will be working closely with our operational organization in Stavanger to ensure operations and maximum value creation in drilling and well work on Johan Sverdrup, says Reinertsen.